Last Monday’s signals were not triggered as there was insufficiently bearish price action at 1.2400.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2400.
- Place the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is 25 pips in profit.
- Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of1.2508 or 1.2610.
- Place the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 25 pips in profit.
- Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
GBP/USD Analysis
This pair has returned right into the middle of its long-term range. It does not want to go anywhere for the time being. This means that technical trades may become available, but conservative profit targets would make sense. The short-term action is bullish but reversals at either of the key resistance levels above are something to watch out for. Much will depend upon the British data releases due soon, making movement very hard to predict today.
Regarding the GBP, the Governor of the Bank of England will be speaking at a conference at 9am London time, and half an hour later there will be a release of Average Earnings data. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm.